THE NEW FAIR CREDIT REPORTING ACT COMPLIANCE INFORMATION!

The Fair Credit Reporting Act governs not just credit reporting, but all employment background checks you obtain from a consumer reporting agency like Com
Quest. While the new law is designed to protect the privacy rights of individuals, it clearly recognizes pre-employment screening as an important, legitimate
purpose to protect the workplace. Therefore, amendments taking affect immediately have added new requirements on the use of consumer reports for employment
purposes.

In brief, as a user of background reports for employment screening, there are new steps you will need to follow:

Disclosure: Each applicant must be given a clear, written statement indication that a background report will be ordered.

Release: You must obtain a separate release authorizing this background check.

Applicant Notice: If you decide not to hire based on information in the report, you are required to notify the applicant before taking this action, provide the
applicant a copy of the report and a copy of the Summary of Your Rights Under the FCRA.

Certification: You must certify to Com Quest that reports are used for employment purposes and that you are following the above procedures. This certification
is part of the Com Quest User Agreement.

Obsolete Information: The new law requires that reports containing information more than seven years old may only be obtained if the consumer will be
employed at an annual salary of $75,000 or more. This is an increase from the $20,000 salary requirement in the previous law.



We will provide you with several documents to aid in compliance with the FCRA regulations. They are:

1. Notice to Users of Consumer Reports: Obligations of Users Under the FCRA

This is the official document from the Federal Trade Commission summarizing your obligations as a user of consumer reports. Please Read this and put it in
your files.

2. Disclosures & Release

We will provide you a sample disclosure and release form. We suggest you give this form to the applicant and obtain a signature. Then make a copy for your
records and give the original and a copy of the Summary of Rights to the applicant. The release is for your records; it is not sent to Com Quest.

3. Disclosure for Investigative Report

If you are ordering a reference check, known under the law as an investigative report, this disclosure must be given to the applicant with a copy of the Summary
of Your Rights.

4. Adverse Action Letter

Under the law, "adverse action" is defined as a denial of employment. This letter - or one similar to it - must be sent to the applicant if you are denying
employment based in whole or in part on any information contained in a background report. You must include with the letter a copy of the report you have
received from Com Quest and a copy of the Summary of Your Rights.

5. A Summary of Your Rights Under the Fair Credit Reporting Act

This document must be given to the applicant at the time you provide the disclosure that you are ordering a background report and also with a copy of the
report if you decide not to hire based on information in the report. You may make copies of this document for your use.

6. Authorized Access Agreement

Since the law imposes potentially severe penalties on persons who obtain reports without having a permissible purpose, Com Quest suggests you adopt strict
procedures regarding which employees have the ability and authority to access Com Quest reports. We also suggest you have employees sign this form, proving
that the employee is aware of the confidential nature of the information and the penalties for violating the law. This document should be kept in your files.


If you have questions about compliance or if we can be of assistance to you in defining your new procedures, please contact us. Our customer service personnel will be happy to assist you.